Question
Using the Compound interest and present value, how to solve those questions? Explanations.. Thank you! 1. The current value of a lottery ticket paying $4,000
Using the Compound interest and present value, how to solve those questions? Explanations..
Thank you!
1. The current value of a lottery ticket paying $4,000 per year for 10 years, with the first payment being currently due, and assuming a 5% annual interest rate.
2. The amount that a $2,550 deposit into an investment account will grow to in 5 years, at 8% interest, compounded quarterly.
3. The current measurement of a $125,000 obligation that is due 3 years, assuming a 10% annual interest rate.
4. The amount that must be set aside today to enable annual payments of $40,000 each for 5 years, beginning at the end of the first year.The annual interest rate is 6%.
5. The amount one would have in a retirement account if they deposit $3,500 per year beginning immediately, for a total of 30 years.The annual interest is 5%.
6. The amount one would have in a retirement account if they deposit $2,300 per year beginning at the end of the first year, for a total of 30 years.The annual interest is 5%.
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